Annual Report 2006-2007

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Your location: Performance > Outcome 4 > Output 4.1 > Quality and quantity information

OUTPUT 4.1: Property management

Output 4.1: Quality and quantity information

Quality indicators

Quantity indicators

Portfolio condition

The condition of the estate continued to improve in 2006–07, reflecting the Overseas Property Office’s new construction works, refurbishments and cyclical maintenance programs. The department assessed the overall condition of the overseas owned property estate in 2007 as good measured against industry-based benchmarks.

Current construction and refurbishment programs and proposed major construction projects foreshadowed in the department’s forward property program (see output 4.2 for more information) will contribute further to the value of the estate, as will improved and updated compliance with relevant Australian and local building codes.

Tenant satisfaction

Tenant satisfaction with the delivery of property management services by United Group Services (UGS) is measured by surveys conducted each year by OPO (see also output 4.2). OPO assessed the performance of UGS as good throughout the year.

We ensured that the service provider maintained close liaison with tenants and that property management services were delivered to agreed standards (see also quality and quantity information under output 4.2).

Quantity information for output 4.1

Return on investment

The rate of return on investment on the overseas owned estate was 11.73 per cent, reflecting the continuing high level of capital expenditure undertaken by OPO throughout 2006–07 in response to the Government’s program of construction, relocations and property acquisitions in the overseas property estate.

Management expense ratio

The management expense ratio indicates the relationship between costs of management and value of the estate. For 2006–07 the ratio was assessed at 1.00 per cent, which was consistent with external industry benchmarks.

Annual dividend

The department paid to the Government a dividend of $25 million from the operations of the overseas owned estate in 2006–07, as agreed between the Minister for Foreign Affairs and the Minister for Finance and Administration. The department also returned $230 000 from property divestment proceeds.

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